South Korea Annual Inflation Rate Steady at 0.7% in June


South Korea's annual inflation rate was unchanged at 0.7 percent in June 2019, below market expectations of a 1.0 percent increase. A faster rise in prices of both food and housing offset a further drop in transport cost.

Inflation was steady for both restaurant & hotels (at 1.8 percent, the same as in May) and education (at 1.1 percent), while prices rose further for food and non-alcoholic beverages (2 percent vs 1.9 percent in May); housing & utilities (1.2 percent vs 1.1 percent); furnishing, household equipment & routine maintenance (1.7 percent vs 1.5 percent); and alcoholic beverages & tobacco (0.9 percent vs 0.7 percent). Also, cost of health increased (0.1 percent vs flat reading) and prices fell less for recreation & culture (-0.1 percent vs -1 percent) and clothing & footwear (-0.1 percent vs -0.2 percent). On the other hand, cost of miscellaneous goods & services slowed (1.5 percent vs 1.9 percent) and prices dropped at a faster pace for transport (-1 percent vs -0.6 percent) and communication (-2.8 percent vs -2.7 percent). 

For 2019, the Bank of Korea targets inflation rate to be at 2 percent.

Core CPI, which excludes oil and agricultural products, advanced 0.7 percent year-on-year in June, following a 0.6 percent gain in May. 

On a monthly basis, consumer prices fell unexpectedly by 0.2 percent in June, the first monthly drop in three months, following a 0.2 percent gain in May and missing forecasts of a 0.1 percent rise.

South Korea Annual Inflation Rate Steady at 0.7% in June


Statistics Korea l Rida Husna | rida@tradingeconomics.com
7/2/2019 9:48:28 AM